Introduction
Biotechnology and pharmaceutical companies are increasing their focus on their intellectual property and assets management. Portfolio management and business development teams are becoming aware of the potential to capitalize on their company's non-core assets and to access niche markets by spinning out new, independent biotechnology companies backed by important venture capital investments.
Scope of this report
- Analysis of more than 35 European and US biotech spinouts over the last 10 years, with initial investments ranging from $8m to $150m
- Insight into the strategic and human difficulties encountered during spinouts and detailed strategies for overcoming these barriers
- Strategic recommendations based on interviews with senior executives from portfolio management teams, spinout and biotechnology companies
- Detailed case study of BioXell, a successful Italian biotechnology company, spun out from Roche in 2002
Research and analysis highlights
Over the past five years, the number of spinouts has increased and seems set to continue to grow further, as investors, biotechnology, and pharmaceutical companies view with an increasing interest the possibilities offered by the low-risk spinout deals.
One of the greatest drivers towards spinout creation is that they help refocus company strategy. Following a merger or simply complementing a strategic realignment on core areas, spinouts provide a valuable option to leverage assets of low strategic importance, or under-exploited assets in their parent company.
Managing remaining ties between the spinout and its parent company is essential to the success of the spinout. While parent company should retain limited equity and products rights in the spinout company, excessive product trumping or management interference from the parent company deter investors and impedes the spinout entrepreneurial attitude.
Key reasons to read this report
- Gain insight into the factors that will have the greatest impact when spinning out assets from a biotechnology or pharmaceutical company
- Determine the best strategy to spin out assets through understanding their strategic advantages and challenging deal structure
- Manage fruitful interactions with investors and other key stakeholders to optimize return on investment and promote entrepreneurial attitude
Biotechnology and pharmaceutical companies are increasing their focus on their intellectual property and assets management. 